Middle East

An official from the?industry?ministry said that Japan would consider buying Russian crude oil after the U.S. granted a 30-day waiver of?sanctions amid the Iran War, taking into account international conditions and its own?national interest. The U.S. waiver permits countries to purchase sanctioned Russian crude oil and petroleum products that are currently stranded on the sea. Treasury Secretary Scott Bessent described this as a move to stabilize the global energy market, which has been?roiled by Iran's war. Narumi hosokawa, the deputy general-director of the Ministry of Economy, Trade and Industry's (METI) immediate crisis management, said, "We will examine the issue in...

Brazil's government has scrapped diesel taxes and imposed a tax on oil exports. The move, which was made on Thursday, could affect the state-run Petrobras as it tries to ease the impact of recent global oil price spikes. The administration of President Luiz inacio da Silva said that the temporary measures will reduce the impact on local fuel prices caused by price swings resulting from the U.S./Israeli war against Iran. The South American nation cut the PIS federal tax and Cofins federal tax levied on diesel to zero. It also imposed a 12 percent tax on crude oil and a...

An official said on Thursday that Nepal would begin rationing cooking gas due to fears of a possible nationwide shortage caused by the Middle East conflict. Chandika Bhatta, executive Director of the state-run Nepal Oil Corporation said that authorities will only refill half of empty cylinders of consumers starting Friday in order to extend the life of its liquefied petrol gas (LPG). The shortage of liquefied petroleum gas (LPG) is due to the U.S. and Israeli war against Iran, and Tehran's response across the region. This has effectively stopped shipping through the Strait of Hormuz. Bhatta said that despite assurances...

Gulf officials said that three Gulf states were reviewing the way they invest trillions of dollars from their sovereign wealth funds to offset the losses caused by the U.S. and Israeli war against Iran. The official who spoke on condition of anonymity said that the review could include divestments, reversals of investment pledges, and a reevaluation of global sponsoring deals. This is because the oil and gas-rich states are assessing how to deal with the financial shock. The top four economies of the Gulf Cooperation Council are Saudi Arabia, Qatar and Kuwait. Three of the four largest economies in the...

Australian Energy Minister Chris Bowen announced on Thursday that the country will temporarily relax fuel quality standards during the next 60-day period, as the Iran war is choking 'oil supplies and sending prices soaring. The move would allow fuels to contain up to 50 parts-per-million of sulphur, instead of the normal 10 parts-per million. He said that under the new relaxation, 100 million additional litres of gasoline per month will be allowed to enter the country. This will ease price pressures and fuel will be directed towards regions with a shortage. Ampol, a fuel refiner and retailer, is the company...

Oil prices rose on Thursday as Iran intensified its attacks?on?oil?and?transport facilities in the Middle East. This sparked fears of a long-term conflict and disruptions to oil flow through the Strait of Hormuz. Brent futures were up $8.54 or 9.28% to $100.52 a bar at 0354 GMT. U.S. West Texas Intermediate crude rose $7.22 or 8.28% to $94.47. Brent crude oil hit $119.50 per barrel on Monday. It was its highest price since mid-2022. Then, it dropped when U.S. president Donald Trump announced that the Iran War could end soon. In remarks directed at the U.S., an Iranian military spokesperson said...

Gulf officials said that three Gulf states were reviewing the way they invest trillions of dollars from their sovereign wealth funds to offset the losses caused by the U.S. and Israeli war against Iran. The official who spoke on condition of anonymity because the matter was sensitive and without naming the states, explained that these reviews could include reversing investment pledges, divesting and re-evaluating global sponsorship deals. The top four economies of the Gulf Cooperation Council are Saudi Arabia, Qatar and Kuwait. Three of the four largest economies in the GCC will be assessing current and future investments and sponsorships...

According to three sources, the commodity trader Mercuria intends to remove large volumes of aluminum from LME storage facilities, as the closure of the Strait of Hormuz has 'frozen' Middle East shipments, and put further pressure on supplies in Europe, and the United States. Around 9% of global primary aluminium is produced in the Middle East. Since last week, the U.S. and Israeli war on Iran has closed the Strait of Hormuz. Mercuria, a Swiss company, cancelled or designated for delivery on Monday nearly 100,000 tons?of aluminium in LME-approved Port Klang warehouses. The sources who are familiar with the issue...

The price of British government bonds?fell dramatically in early trade on Tuesday, as the markets questioned if the plans for a record releasing?of oil reserve could offset any potential supply shocks resulting from the U.S. and Israeli war against Iran. As of 0906 GMT the short-dated gilt yields were up around 12 basis points, completely erasing Tuesday's large drops. Investors have also reduced their bets for a Bank of England rate cut in this year. The probability is now?roughly 20 percent, down from 50 percent a day ago. The British public is more vulnerable to a shock in energy prices...

Malaysia can continue to provide subsidies for a widely used fuel, according to Prime Minister Anwar Ibrahim, amid the surge in oil prices worldwide due the Middle East conflict. The government has decided to 'keep the price for RON95 fuel at 1.99 ringgit per litre ($0.51) despite a spike in prices. Checks with the state energy company Petronas have confirmed this. Anwar, in a televised statement, said that the?reserves of oil will last until May. Anwar stated that the government was able to protect the people against the full impact of the rising prices for oil and other essentials. He...

The Wall Street Journal, citing sources familiar with the issue, reported that the 'International Energy Agency' has proposed the 'largest release in oil reserves history to lower a soaring crude price? due to the U.S./Israel war against Iran. WSJ reported that the release of oil would be greater than the 182,000,000 barrels?of crude oil that IEA members countries released in two releases in 2022, when Russia began its full-scale 'invasion' of Ukraine. The Wall Street Journal reported that the IEA will convene an extraordinary meeting with its member states 'on Tuesday. They are expected to 'decide on the proposal -...

Karoline Leavitt, White House Press Secretary, said on Tuesday that the American public would see oil and gas prices fall rapidly once the joint Israeli-U.S. war against Iran is fully accomplished. Leavitt told reporters that the increase in gas and oil prices was temporary and the operation would result in lower prices over the long-term. Prices of oil on Monday soared to $119 per barrel, their highest level?since June 20, 2022. Supply cuts by Saudi Arabia and other producers have stoked concerns about major disruptions in global supply. Leavitt said that Trump's energy team was closely monitoring the markets and...

Satsuki Katayama, Japan's Finance Minister, said that the country is prepared to take any steps necessary against sharp swings on foreign exchange and other financial markets. These have a major impact on peoples' livelihoods. Katayama said at a regular press conference that it was "clear" that the Middle East crisis had caused significant volatility in financial markets. She said that the government was ready to take action at any time to respond to the sharp swings in the market, particularly those caused by the surging oil price. The yen reached 159.43 yen on Thursday. This is the lowest since January...

Calculations showed that the proceeds from Russia's mineral extract tax, which is its largest tax item for crude oil production and the country's?largest taxable item, could almost double in March due to the global price rally induced by the conflict in the Middle East. The global oil benchmarks soared to $119 per barrel on Monday, the highest level since June 2022. This was due to supply cuts from Saudi Arabia and others producers, which stoked fears of a major disruption to global supplies. The price increase of crude oil, along with the natural gas that it produces, will benefit Russia's...

South Korea announced on Thursday that it would cap the domestic fuel prices starting Friday in order to combat an increase in energy costs resulting from the conflict?in the Middle East. South Korea, Asia's fourth largest economy and a country that relies on imported energy for its needs, is making this move to try to mitigate the impact of the Middle East oil crisis. South Korea has set the maximum wholesale gasoline price at $1.17 per liter. This is below Wednesday's 1,833 won. The price will be adjusted every two weeks in order to reflect the changes in oil prices....

Donald Trump hoped to reassure Americans on a visit to Kentucky and Ohio, Wednesday, that the rising prices of 'gasoline' were temporary. Republican colleagues worried that these increases were causing voter anxiety over the economy. Trump's first campaign trip since the U.S. and Israeli military operation against Iran began on February 28, was a successful one. He could use the trip to hone his economic message, and highlight his achievements ahead of the midterm elections in November. His fellow Republicans are defending a narrow?majority in both chambers of Congress. Trump's first remarks at his stop in Cincinnati, Ohio were centered...

The U.S. and Israel war against?Iran is likely to hit consumers hard across the United States' economic spectrum. This could undermine a key component of the economy that was?expected? to boom this year due in part because of a hefty income tax refund, low unemployment and rising asset prices. Analysts felt that both "spurs", of the U.S.'so-called K-shaped economic model, could maintain or even increase spending in the upcoming months. Wealth effects would lead better-off families and service industry workers to spend more, while windfall tax refunds due to 'new exemptions on overtime and tip income, helped hourly workers. Both...

A?representative of Wanhua Chemical said that the company has declared "force majeure" on its Middle East clients. According to an email sent by Wanhua to its customers and seen here, the 'force majeure' - a clause in a contract which relieves parties of their obligations due to a unforeseen event - took effect on March 7th. The letter said: "We face the'severe disruption of the shipping routes in Strait of Hormuz which makes?delivery unreasonably unsafe or impossible." According to traders, the petrochemical major sells its derivatives like isocyanates - a building block used in polyurethane for furniture, bedding and automobile...

Share markets are down on concerns that a U.S. - Israeli war against Iran is escalating and will lead to a squeeze on energy supplies around the world. Here are some?actions? that governments have taken?or? plan to take in order to lessen the impact the war has on their economies. SOUTH KOREAN PLANS FUEL CAPITAL South Korean President Lee Jae Myung announced on Monday that the government would be capping domestic fuel prices for nearly 30 years. The country will also look for sources ?of energy beyond supplies shipped via the Strait of Hormuz, and a 100 trillion won ($67...

Indonesia's Finance Minister?said? on Monday that the country will absorb the shock of a rise in oil prices by increasing the allocation to fuel subsidies and using the state budget. Indonesia has budgeted 381.3 billion rupiah (22.50billion dollars) for energy subsides and to compensate Pertamina, the state energy company and PLN, the utility company for their efforts to maintain some fuel and electricity prices at an affordable level. The budget is based on assumptions that Indonesian crude oil prices will average $70 per barrel in 2026 and the average rupiah rate of exchange for dollars will be 16,500. Oil prices...

South Korean President Lee Jae Myung announced on Monday that the government would cap domestic gasoline prices for the first time in nearly 30 years to contain a price spike after the Middle East conflict sent global crude oil prices sharply higher. At an emergency meeting to discuss the Middle East Crisis, Lee stated that the government would "boldly and swiftly" implement a maximum pricing system on petroleum products which have seen recent price increases. In his opening remarks, Lee stated that the current crisis is "a significant burden" on our economy which is heavily dependent on global trade as...

U.S. Crude Futures increased more than 20% during early trading on Monday. They reached their highest level since July 2022, due to the escalating U.S. - Israeli 'war with iran. As of 2220 GMT, U.S. West Texas Intermediate crude futures were up as much as $20.34 per barrel and were $14.83 or 16.31% higher at $105.73. The price of WTI crude futures rose by as much as $22.4%, to $111.24 in the early part of the session. The benchmark contract rose 12% on the Friday, and it has gained 36% in the last week. Iran named Mojtaba Khamenei, the son...

The U.S./Israel war on Iran caused a disruption in crude and feedstock imports from the Middle East, forcing several Asian refineries and companies to declare force majeure and cut back production. Asian steam crackers have declared force majeure on petrochemical deliveries to customers, despite sourcing more than 60% of their feedstock for naphtha from the Middle East. Three operators said they were reducing run rates in order to carry over some of the feedstock they have into next month. This will allow them to keep their plants operating and avoid shutting down even if they don't get enough imports. Two...

A government order revealed that India has invoked emergency powers to increase production of LPG in order to prevent a shortage after supply disruptions caused by the Middle East Crisis. Last year, the world's second largest importer of LPG consumed 33.15 millions metric tons of LPG. This is a mixture between propane and butane. About two-thirds (or 85-90%) of LPG is imported, and most of it comes from the Middle East. The order, issued late Thursday night, asked all oil refiners to "maximise their propane and butane supplies and use them for the production of LPG". The government has asked...